Michelin to invest $330 million in Polish tire plant

PARIS (Feb. 17, 2005) — Group Michelin will invest nearly $330 million over three years to expand car and light truck tire capacity at its Stomil Olsztyn S.A. tire plant in Olsztyn, Poland.

The project will raise annual capacity by about 3 million tires, Michelin said, with the first output from the expansion due in March 2006. At full capacity, the expansion will create 520 jobs at the 37-year-old plant, which employs 2,300 currently and produces passenger, light truck, medium truck and bus, farm and industrial tires.

Michelin reportedly had been considering this expansion for either Olsztyn or its plant in Nyiregyhaza, Hungary.

Local media reported Michelin intends to add a logistics warehouse at the site in addition to expanding capacity. The firm earlier this year obtained a 205-acre plot adjacent to the Olsztyn factory.

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